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How to finance an engagement ring?

How to finance an engagement ring?

Financing an engagement ring is almost the same thing as financing any other property. In how to finance an engagement ring there are some tips or steps to follow. Some think financing an engagement ring can be very difficult but the only differences between other property financing and an engagement ring financing is the length of term and the interest rate.

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Financing an engagement ring can take as long as up to 3 years while other is just a matter of one to 25 years. While the interest rate on other property be very high, an engagement ring has its interest rate to be low and high depending on the type of ring and this is because of the price and value difference. Financing an engagement ring can look very serious and having your own motorcycle can be exhilarating that is thrilling and exciting as you would be proposing to the person you want to spend your life with.

how to finance an engagement ring

6 Easy steps to Finance Engagement ring:

  • Know the price of an engagement ring. Before you can plan having an engagement ring or financing it, you must know the price of an engagement ring. There are ways of getting the price of an engagement ring you want. You can browse online or go to any engagement ring seller to get the price of different types of engagement rings. Engagement rings vary from one another as their maker sizes and shape are very different. A company of an engagement ring might have their lowest price for an engagement ring to be $4,000 while another company might have their lowest price for their engagement ring to be $5,000. These two engagement ring can be of same values but has different prices due to the type of maker.

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  • Check your credit record. When you have found out the prices of different types of engagement rings available, you should check your credit record if you have a very good and high credit score. If your credit score is high enough, you might need to turn to the bank to lend you money to buy the engagement ring. Before any bank or your bank can give out loan to any individual, the credit score should be at least as high as 680. Your credit score should be at least 680 and to get this, you would have to order for your credit report. Getting your credit record is initial step for how to finance an engagement ring and it reflects your current position.
  • Go for interest rate compare. You should compare the interest rate of lenders before you turn to them for money lending. Different lender with different interest rate so you should definitely check out for the lender that has the lowest interest rate. You should go for the one that will be convenient and easy to pay back. There are actually two types of the interest rate base on time. These are the fixed interest rate and the variable interest rate. The variable interest rate has the parent changed later in which low interest rate might be paid at first and higher interest rate towards the end of the financing due time. There are also hybrid interest rate in which the interest payment is fixed for some times and turns to variable towards the end of the agreement.
  • Consider the down payment. You should know that when you are financing an engagement ring, you definitely will have to be making down payment. If your down payment is high, you might need to reconsider. Although the time for financing an engagement ring can take long but might not finished the payment before the due time.

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  • Get the necessary documents like quality papers: When you want to finalize the deal with the engagement ring seller, you should get all the necessary documents ready and presented to the dealer. The documents show the credit sale which is to be signed by the lender. Getting quality product for you loving ones is also important in how to finance an engagement ring.
  • Make payment and sign the documents. The buyer and the seller could make an agreement on how much to be paid and how the payment should be made if it’s by cash or by bank transfer. You should make proper negotiations before paying. You should make the payment and sign every necessary documents but read the documents and the agreement form to make sure there is no mistake while the seller gives you the engagement ring receipt.
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Harish Yadav

Finance and market analyst and chief writer on howtofinance. Passionate to read books and articles on marketing and accounting. Also edits other articles and publish them here.

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